SOURCE: Sport-Haley, Inc.

April 21, 2009 15:29 ET

Sport-Haley, Inc. Reports Formation of Special Board Committee

DENVER, CO--(Marketwire - April 21, 2009) - Sport-Haley, Inc. (NASDAQ: SPOR) ("Sport-Haley" or the "Company") today reported that the Company's Board of Directors has recently formed a Special Committee to determine whether the Board of Directors should consider taking steps which would relieve the Company from its public reporting obligations under the securities laws. The Special Committee is expected to reach its conclusions and provide the Board of Directors with a report of its recommendations by the end of April 2009, at the very latest.

The Company's management believes that, given the relative size of the Company, the significant costs of complying with securities reporting requirements greatly outweigh the benefits. The daily trading volume for the Company's common stock in market-negotiated transactions is relatively insignificant when compared with other public companies, and management believes that the Company resources currently allocated to complying with securities reporting requirements would be better utilized within other initiatives. Therefore, management believes that it may be in the Company's best interests to pursue the procedures required to relieve the Company from its public reporting obligations.

"Given the current world economic conditions and conditions within golf apparel markets in particular, we're looking at every opportunity to contain operating costs while at the same time maintaining the high level of products and customer service that we provide," stated Donald W. Jewell, Chief Executive Officer. "It has not made sense for some time now for a Company our size to expend the hundreds of thousands of dollars necessary to maintain compliance with securities reporting regulations each year. Our use of capital would be much better utilized on initiatives that give us a better opportunity to support our customer base with outstanding service and to expand our marketing efforts within our core business."

Sport-Haley, Inc. designs, purchases, contracts for the manufacture of and markets women's and men's fashion golf apparel and outerwear under the SPORT HALEY® and Ben Hogan® labels. The fashion golf apparel collections, known for their innovative designs, quality fabrics, generous fits and classic styles, are primarily marketed in the premium and mid-priced markets, through a network of independent sales representatives and distributors, to golf professional shops, country clubs, resorts and exclusive department stores within the United States. Ben Hogan® fashion apparel is distributed pursuant to a licensing agreement with Callaway Golf Company.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: When used in this release, the words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," "believe," and similar expressions, variations or the negative of these words, and any statement regarding possible or assumed future results of operations of our business, the markets for our products, anticipated expenditures, regulatory developments or competition, or other statements regarding matters that are not historical facts, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. The reader should be aware that our actual results could differ materially from those contained in forward-looking statements. Our financial condition and the results of our operations will depend on a number of factors, including, but not limited to, the following: successfully anticipating fashion trends, designing favorably accepted fashion golf apparel, effectively advertising and communicating within the marketplace, and penetrating our chosen distribution channels; competition within golf apparel markets; business conditions and growth in the fashion golf apparel market and the general economy; our ability to successfully forecast sales and optimize inventory levels; our ability to successfully manage risks associated with the trend of a high relative percentage of sales with respect to licensed apparel, such as the Ben Hogan® apparel collections; loss of certain third party suppliers, and/or delays in receiving garments from third party suppliers caused by various factors, including lost or reduced manufacturing capacity or significant suppliers, labor shortages, timely performance of third parties, transportation difficulties, and others; significant delays in deliveries from third party suppliers; unsatisfactory recourse with regard to nonconforming goods received from foreign suppliers; political and international trade relations; changes in international trade quota systems for apparel; significant reliance upon several individual foreign suppliers; reliance upon a certain foreign person responsible for maintaining relationships with and monitoring the performance of certain of our significant foreign suppliers; consumer spending on golf apparel; general global economic and political conditions resulting from threats or acts of war or terrorism and responses thereto; access to capital; maintaining satisfactory relationships with commercial banking institutions; establishing controls with regard to and maintaining the integrity of technology and information systems; and, reliance upon executive officers and key employees. Additional information on these and other factors that could affect our financial results is included in our Form 10-K for the year ended June 30, 2008. There may be other factors not mentioned above or included in our Securities and Exchange Commission filings that may cause actual results to differ materially from any forward-looking statement. The reader should not place undue reliance on any forward-looking statement. Neither the Company nor any of its corporate officers or key employees assumes any obligation to update any forward-looking statement as a result of new information, future event or development, except as required by securities laws.

Contact Information

  • CONTACT:
    Donald W. Jewell
    Chief Executive Officer
    (303) 320-8800

    Patrick W. Hurley
    Chief Financial Officer
    (303) 320-8800